INFO 8e
(16.5.2017)
STUDENT FINANCIAL AID 2017–2018
More detailed information can be found on Kela's website (www.kela.fi).
STUDENT FINANCIAL AID – WHAT IT IS
In order to qualify for student financial aid, you must be a full-time student, make satisfactory study progress,
and be in need of financial assistance. Financial aid is available in the form of study grant, government loan
guarantee and some students can also be granted housing supplement. Study grant and housing supplement
are government-financed monthly benefits. The study grant is taxable income. If you have been awarded a
government loan guarantee, you can apply for a student loan with a bank of your choice.
WHAT KIND OF STUDIES ARE SUPPORTED?
Student financial aid is available for full-time post-comprehensive school studies lasting at least 2 months at
an upper secondary school, folk high school, vocational school or institution of higher education. Financial aid
is also available for studies abroad.
Studying for a degree in higher education constitutes full-time study. Non-degree academic studies
yielding at least 5 credits per month are also considered full-time. Vocational or other studies qualify if the
studies comprise an average of at least 4.5 ECVET points or 3 study weeks per month (or 25 hours a week).
Studies to complete the upper secondary school curriculum constitute full-time study provided that they comprise at least 75 courses. Financial aid may also be granted to mature students studying at an upper secondary school, if they are studying for a dual degree, that is to say combining upper secondary studies with studies for a basic vocational degree. If you are studying at an upper secondary school, you must take at least 10
courses or 2 matriculation tests each semester.
ELIGIBILITY CRITERIA
The amount of financial aid depends on the type of school, your age and marital status, and your mode of
accommodation. You are not eligible for student financial aid if you receive any of the following benefits: pension (other than survivors´ pension), rehabilitation allowance, unemployment benefits, adult education allowance (government guarantee for student loan is available), benefits accompanying apprenticeship training,
conscript´s allowance, student financial aid from abroad. When the need for financial aid is evaluated, your
own income as well as, under certain circumstances, your parents' income is taken into account.
BENEFITS AVAILABLE UNDER THE FINANCIAL AID PROGRAMME
You are eligible for study grant when you have turned 17. You can be granted study grant from the beginning of the month following your 17th birthday, at the earliest.
As of 1 August 2017, housing supplement is no longer payable to students living in rented accommodation (with certain exceptions, see the pages below), but as of that date students will instead be entitled to
general housing allowance. General housing allowance must be applied for separately. For more information,
see www.kela.fi/web/en/general-housing-allowance.
Government guarantees for student loans are with some exceptions available to students who are
getting study grant. A loan guarantee can, however, also be granted to students who are not getting study
grant, if they are 18–19 years of age and attend a secondary-level educational institution, or if they are under
17 and do not live with their parents (in the latter case, a parental income test is applied). Students in higher
education who get study grant are awarded a government loan guarantee automatically, without application.
Kela will not normally provide loan guarantees to students who have previously defaulted on a student loan
requiring Kela, as a guarantor for the loan, to pay the loan back, unless there is a special reason for granting
a loan guarantee. Starting from the autumn term 2017, a payment default entry will no longer prevent students from getting a government loan guarantee.
Student loans are available from banks operating in Finland. The lending bank will check the loan guarantee details with Kela when granting a loan. Interest, repayment and other terms and conditions applying to
the loan are agreed between the bank and the student. The loan disbursements are specified in the decision
concerning eligibility for financial aid. Interest is capitalised (added to the loan capital) during terms in which
the student is paid financial aid, and further for one more term after the final term in which the student received financial aid.
Student loan compensation for higher education students. If you complete a higher education degree within the target time, Kela can pay a portion of your student loan. The student loan compensation is a
repayment, made by Kela, on your student loan and it can amount to as much as one third of your loan
amount. It only applies to students in higher education who have started their first higher education studies on
1 August 2014 or later.
If you started your first higher education studies before 1 August 2014, you can get a student loan tax
deduction. When you have completed your higher education degree within the set time and you make re-
payments on your student loan, the tax that you have to pay is reduced by an amount equalling the amount of
the student loan tax deduction.
The student loan compensation is 40% and the student loan tax deduction is 30% of the loan amount
exceeding EUR 2,500 – but no more than a specified amount. As a rule, loan compensation and tax deduction are granted without application. There are, however, some exceptions to this.
Students pursuing higher education studies are entitled to a meal subsidy. The subsidy is paid directly
to the operator of the student cafeteria and it amounts to EUR 1.94 per meal.
Basic rates of the study grant (EUR per month, gross amount):
Secondary level
Higher education
1. married or has dependants
250,28
250,28
2. lives alone, aged 20 or over
250,28
250,28
3. lives alone, aged 18–19
250,28 
250,28
4. lives alone, aged 17
101,74 
101,74 
5. lives with his/her parent, aged 20 or over
81,39 
81,39 
6. lives with his/her parent, aged 17–19
38,66 
38,66 
Subject to parental income test, the study grant  = may be increased  = may be increased or decreased
 = may be decreased, parental income will have no effect after 1 January 2018
‘Institute of higher education’ refers to universities, polytechnics (universities of applied sciences) and continuing education centres at universities. The secondary level includes all other educational institutes.
You will get an age-based increase to your study grant from the beginning of the month in which you
reach a certain age. If you get less than the maximum student grant available, which is EUR 250.28, (categories 4–6 in the table), you are automatically granted a low-income supplement, provided that the annual income of your parents does not exceed EUR 39,000. The full increase is available up to an annual income of
EUR 22,770. It is decreased on a sliding scale as income increases.
If your monthly study grant is EUR 170 or more, a 10% preliminary tax is withheld. The tax can also be
withheld in accordance with your personal tax card. If you have no income apart from the study grant, you
need not pay any income tax on the grant at all. You can ask the tax office to send your tax card to Kela.
Housing supplement is available to students enrolled in a fee-based programme at a Finnish folk high
school, sports institute or the Sámi Education Institute who live in a school dormitory. The housing allowance
is EUR 88.87 per month. If you are under 18, your parents' income will affect the amount of your housing
supplement. You can get housing supplement and a government guarantee for your student loan even if you
do not qualify for study grant.
Housing supplement is also available to students studying abroad, if they live in rented accommodation.
The housing allowance is as a rule EUR 210 per month. To qualify, students must both live and study abroad.
Government guarantees for student loans (EUR per month):
Secondary education: Students aged under 18
300
Higher education
650
Secondary education: Students aged 18 or over
650
Recipients of adult education allowance
650
HOW OTHER INCOME AFFECTS FINANCIAL AID
All grants, scholarships, taxable earnings as well as investment income (student financial aid excepted) that
you have received during the calendar year are counted as income when your eligibility for financial aid is
means-tested. Educational grants intended to subsidise international student exchange do not count as income. The annual income limit is individual and it depends on the number of months for which you have received financial aid. For each month for which you receive study grant or housing supplement, the exempt
amount is on average EUR 660, and for each aid-free month EUR 1,970. Assuming that you received financial aid for 9 months, you would be allowed to have up to EUR 11,850 a year in other income. The income
may be earned at any time during the calendar year.
Your income is not checked when the benefit is granted, so you must make sure yourself that you do
not exceed the annual exempt amount. By cancelling financial aid before it is paid out to you, or by paying
back, by the end of May the following year, aid that you have received, you can raise your exempt amount.
The income check is based on taxation data. If you exceed your exempt amount, you will be required to pay
back the equivalent amount of study grant and housing supplement. In accordance with the Act on Student
Financial Aid, the amount recovered is increased by 7.5%. Of the income that you received before the month
in which you started your studies, or after the month in which you graduated, any amount exceeding on average EUR 1,970 per month is exempt from the income check.
You must report all grants and scholarships as well as any income received from abroad.
If you are under 20 and attending a secondary-level school, your parents' income will affect the amount of
study grant payable to you. And if you are under 18 and attending a secondary-level school, your parents’
income will affect the housing supplement payable to you. If you are married or have dependants, your parents’ income is not taken into account. The parental income test is normally based on the most recent income
data available from the tax authorities.
If you live with your parent or if you are under 18, your parent's total annual income will reduce the
amount of financial aid you are entitled to, if the income is at least EUR 41,810. If your parents’ income is at
least EUR 61,000, you will not be entitled to any financial aid at all. If you live outside of your parental home
and you are 18–19 years old, your parents’ income will not be taken into account after 1 August 2018. Until
this date, your study grant will be reduced if your parents' annual income is EUR 61,010 or higher. And if your
parents’ income is EUR 80,200 or more, you will not be entitled to any study grant at all.
HOW LONG CAN YOU GET FINANCIAL AID?
In higher education, the maximum eligibility period for financial aid is determined by reference to how long
obtaining a degree in your line of study is normally considered to take. For each year of study (consisting of
60 credits), you are entitled to 9 months of aid, and for each term of study, to 5 months of aid. The maximum
period of entitlement is equal to the number of years studying for the degree is normally considered to take,
plus an additional 3 months. If you started your first higher education studies 1 August 2014–31 July 2017,
you are entitled to 5 additional months of financial aid, and if you started before 1 August 2014 you are entitled to an additional 10 months. For instance, the target completion time for a polytechnic (university of applied sciences) degree comprising 210 credits is 3.5 academic years, and the maximum period for which financial aid is available is 35 months (37 or 42 months for those who started their studies earlier).
If you are enrolled in a 300-credit programme leading first to a Bachelor's and then to a Master's level
degree, the maximum period of eligibility for financial aid is 48 months (50 or 55 months for those who started
their studies earlier). Financial aid for university-level studies is granted in two steps; first for the Bachelor's
degree and then for the Master's degree. You can use a maximum of 30 months of financial aid for the
Bachelor's degree (32 or 37 months for those who started their studies earlier) and up to 21 months for the
Master's degree (23 or 28 months for those who started their studies earlier). But no more than a total maximum of 48 months (50 or 55 months for those who started their studies earlier).
When you have completed a degree, you qualify for additional months of aid, which you can use for
post-graduate or other academic studies along with any months you may have left over from your first degree.
This option is not available for Bachelor's-level studies when you have been admitted to complete both a
Bachelor's and a Master's degree. For higher education studies, financial aid is available for up to 54 months.
If you started new higher education studies 1 August 2014–31 July 2017, the maximum period of financial aid
is 64 months, and if you started new studies before 1 August 2014, the maximum period is 70 months.
If you drop out and then start new higher education studies, the months for which you have already received financial aid are deducted from your entitlement for the new degree. Financial aid that you may have
received for secondary-level studies is not deducted from your aid entitlement for higher education studies.
For vocational studies, the period of financial aid depends on the extent of your study programme. If
you are studying at an upper secondary school, financial aid is granted for the first 3 years, but if you are a
mature student completing a dual degree, aid is only granted for one academic year at a time. After this period, you may apply for additional aid for one academic year at a time, if you are a full-time student. When you
have completed the normal course of study, financial aid may be granted for a period not exceeding 12
months. The normal course of study for completing the upper secondary school curriculum is 4 years. For
completing a basic vocational degree, the normal course of study is the time corresponding to the extent of
the studies with the addition of one year. For other studies, the normal course of study is the time corresponding to the extent of the studies or the time laid down in the curriculum.
FINANCIAL AID FOR STUDIES ABROAD
You can also get financial help with studies that take place outside Finland, provided that they correspond to
Finnish studies that would be covered under the student financial aid provisions, or if the studies form a part
of a Finnish degree programme. Financial aid for studies pursued and completed outside Finland is only
available for citizens of Finland, other EU/EEA countries or Switzerland and their family members. You must
have had a municipality of residence in Finland for at least 2 years out of the 5 years preceding the commencement of your studies, or you must have close ties to Finland in some other way. If you are not a Finnish
citizen, please go to our website at www.kela.fi for more detailed information on the eligibility requirements.
For those studying outside Finland, the study grant is paid at the same rate as in Finland. The housing
supplement for students studying outside Finland is usually EUR 210 per month, and the government guarantee for student loans EUR 800 per month. Housing supplement is available if you live in rented accommodation and have to pay rent and other bills. To qualify, you must both live and study abroad.
FINANCIAL AID FOR FOREIGN STUDENTS
If you are not a Finnish citizen, you can get financial aid for studies in Finland if you live in Finland on a permanent basis for a purpose other than studying. This requires that you are registered as a permanent resident
in the Finnish population register system. For further details on rules and exceptions, see Kela’s website. The
purpose of your residence in Finland is determined by reference to your residence permit, the registration of
your right of residence and your admission to an educational institution. Applications for financial aid must be
accompanied by form OT 10e (Appendix to Application for student financial aid filed by foreign resident).
FINANCIAL AID FOR MATURE STUDENTS
If you have 8 or more years of employment history, you may be eligible for an adult education allowance from
the Education Fund. Further information is available from the Education Fund (www.koulutusrahasto.fi).
If you have been granted adult education allowance for a consecutive period of at least 8 weeks, Kela
can grant you a government guarantee for a student loan. The terms of the loan guarantee are the same as in
the regular student financial aid system. Applications for a loan guarantee can be made on form OT 12 (in
Finnish or Swedish only) or by using Kela’s online service.
HELP WITH STUDENT LOAN INTEREST PAYMENTS
In certain cases, Kela will pay the interest due on a government-guaranteed student loan without requiring
compensation from the student. If your income is low, you are eligible for interest assistance provided that the
interest on your student loan is no longer capitalised (added to the loan capital). In order to qualify, your gross
income must not exceed an average of EUR 1,333 per month in the 4 months preceding the due month.
Higher income limits apply to those with dependent children under 18. You apply for interest assistance for
student loans on form OT 7 (available in Finnish and Swedish only). Assistance with interest payments due
while you are performing your national service is available under the conscript’s allowance scheme.
HOW TO APPLY FOR FINANCIAL AID AND HOW IT IS PAID
Applications can be submitted online at www.kela.fi/asiointi (in Finnish and Swedish only). Alternatively, you
can submit an application by completing form OT 1e, OT 2e or OT 3e. When applying for financial aid for
summer study or other additional aid, please use Kela's online service or complete form OT 15e. If you wish
to cancel or pay back financial aid, you can use Kela's online service or complete form OT 16e. If you are
submitting your application on paper, file the application and any enclosures with your school or with Kela.
Student financial aid, and components of aid that you apply for separately, can be granted from the
beginning of the month in which we received your application, at the earliest. Financial aid is usually
granted for the entire course of study. In the case of university studies, it is granted for as many months of aid
as are available and, in the case of other studies, for the full extent of the study programme in question.
The formal decision on your application is sent to the address you have specified in your application. If
you are under 18, your legal guardian will also be notified of the decision taken on your application. If you
have been granted a loan guarantee and other financial aid benefits for your entire course of study, you will
automatically receive a new decision in July regarding the following academic year.
Your study grant and housing supplement are paid once a month into the bank account indicated by
you. Financial aid is paid regularly on the 4th day of each month or on the nearest following banking day. Retroactive payments can be made daily.
If your circumstances change after you have sent in your application for financial aid, you must report
the changes immediately through our online service at www.kela.fi/asiointi, or on form OT 15e.
FINANCIAL ASSISTANCE FOR DAILY TRIPS BETWEEN HOME AND SCHOOL
If you are a full-time student at an upper secondary school, or if you are studying for a basic vocational degree or attending preparatory education for basic vocational education, Kela will compensate you for the cost
of your daily travel to and from school, provided that your one-way trip from home to school is at least 10 kilometres and the travel costs exceed EUR 54 per month (with some exceptions). You will be required to pay at
least EUR 43 of the total monthly cost yourself. A separate application for school transport subsidy must be
submitted for each academic year on form KM1 (available in Finnish and Swedish only). Submit the application to your school, from where it will be forwarded to us.
For more information:
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Visit our website www.kela.fi, where you will find instructions, calculators, application forms and a discussion forum (in Finnish and Swedish), as well as look up
your application's status, view your personal information, file an application
online, or submit a notification of changes.
Kela's financial aid helpline for students tel. 020 692 229
Kela offices and other customer service points
Educational institutions and financial aid committees
www.facebook.com/opintotuki
Social Insurance
Institution
of Finland
www.kela.fi